The cash account for Brentwood Bike Co. at May 1, 2016, indicated a balance of $
ID: 2446974 • Letter: T
Question
The cash account for Brentwood Bike Co. at May 1, 2016, indicated a balance of $32,788. During May, the total cash deposited was $139,699, and checks written totaled $138,679. The bank statement
A summary of all transactions mailed to the depositor or made available online by the bank each month.
indicated a balance of $42,830 on May 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:
Instructions
A.
Checks outstanding totaled $6,659.
B.
A deposit of $1,875 representing receipts of May 31, had been made too late to appear on the bank statement.
C.
The bank had collected for Brentwood Bike Co. $6,195 on a note left for collection. The face of the note was $5,900.
D.
A check for $170 returned with the statement had been incorrectly charged by the bank as $710.
E.
A check for $310 returned with the statement had been recorded by Brentwood Bike Co. as $130. The check was for the payment of an obligation to Adkins Co. on account.
F.
Bank service charges for May amounted to $24.
G.
A check for $1,213 from Jennings Co. was returned by the bank due to insufficient funds.
1.
Prepare a bank reconciliation as of May 31. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. “Deduct:” or “Add:” will automatically appear if it is required.
2.
Journalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of account titles.
3.
If a balance sheet were prepared for Brentwood Bike Co. on May 31, 2016, what amount should be reported as cash?
I need it set up in a journal and a bank statement please
Instructions
A.
Checks outstanding totaled $6,659.
B.
A deposit of $1,875 representing receipts of May 31, had been made too late to appear on the bank statement.
C.
The bank had collected for Brentwood Bike Co. $6,195 on a note left for collection. The face of the note was $5,900.
D.
A check for $170 returned with the statement had been incorrectly charged by the bank as $710.
E.
A check for $310 returned with the statement had been recorded by Brentwood Bike Co. as $130. The check was for the payment of an obligation to Adkins Co. on account.
F.
Bank service charges for May amounted to $24.
G.
A check for $1,213 from Jennings Co. was returned by the bank due to insufficient funds.
1.
Prepare a bank reconciliation as of May 31. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. “Deduct:” or “Add:” will automatically appear if it is required.
2.
Journalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of account titles.
3.
If a balance sheet were prepared for Brentwood Bike Co. on May 31, 2016, what amount should be reported as cash?
Explanation / Answer
Answer
Brentwood Bike Co.
Bank Reconciliation as on May 31,2016
* Balance as per our book : opening balance +deposit-cheque issued = 32788+139699-138679= 33808
Answer -2 Pass the necessary Journal entries in the books.
1.) for collection a note 6195, face value 5900
Account name Debit Credit
Bank A/c 6195
To Investment (Note) A/c 5900
To Interest A/c 295
2) Adinkin Co. 180
To Bank 180
3) Bank Service Charges A/c 24
To Bank 24
4) Jennings Co 1213
To Bank 1213
Answer- 3
Cash Amount
Balance as per our book 33808
Add Note received 6195
Less : Returned Ch wrongly amount
entered now adjusted (310-130) 180
Bank Service Charges 24
Deposit Cheque returend
But not enetred 1213 1417
---------------------------------
Balance should be reported in B/S. 38586
-----------------------------------
Particulars Amount $ Amount $ Balance as per our book* 33808 Add: Cheque outstanding 6659 Bank collected a note 6195 12854 less: Cheque deposit but not appear 1875 Bank excess charges the amount of return cheque (710-170) 540 We have wrongly entered return cheque amt (310-130) 180 Bank Service charges 24 Ch returned of Jennings co. 1213 3832 Balance as per Bank Statement 42830Related Questions
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